The cost of getting onto Luton’s housing ladder is rising

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Luton’s first time house buyers are spending an average of £18,000 more since 2021 to get on the housing ladder.

The figures have been revealed after Land Registry data showed house prices dropped by 1.8% – more than the average for the East of England – in Luton in December. But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 7.8% over the last year.

The average Luton house price in December was £282,934 – a 1.8% decrease on November.

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Over the month, the picture was different to that across the East of England, where prices decreased 0.8%, and Luton was lower than the 0.4% drop for the UK as a whole.

The average Luton house price in December was £282,934 - Photo PAThe average Luton house price in December was £282,934 - Photo PA
The average Luton house price in December was £282,934 - Photo PA

Over the last year, the average sale price of property in Luton rose by £21,000 – putting the area 34th among the East of England’s 45 local authorities with price data for annual growth.

The average UK house price was £294,000 in December 2022, which was £26,000 higher than 12 months earlier.

It meant prices increased by 9.8% annually in December, slowing from 10.6% annual growth in November, according to the Office for National Statistics.

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First-time buyers in Luton spent an average of £249,000 on their property – £18,000 more than a year ago, and £35,000 more than in December 2017.

By comparison, former owner-occupiers paid £324,000 on average in December – 30.2% more than first-time buyers.

Owners of semi-detached houses saw the biggest fall in property prices Luton in December – they dropped 1.8% in price, to £331,622 on average. But over the last year, prices rose by 8%.

Among other types of property:

Detached: down 1.8% monthly; up 7.2% annually; £494,860 average

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Terraced: down 1.8% monthly; up 8.7% annually; £266,942 average

Flats: down 1.5% monthly; up 5.7% annually; £155,002 average

Buyers paid 22.2% less than the average price in the East of England (£364,000) in December for a property in Luton. Across the East of England, property prices are low compared to those across the UK, where the average cost £294,000.

The most expensive properties in the East of England were in St Albans – £615,000 on average, and 2.2 times as much as more than in Luton.